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Thu, 27 Jul 1995

JP/Few developers act responsible

Few developers act responsible

JAKARTA (JP): The city administration's housing program is being hindered by the reluctance of private developers, with only four of 66 developers meeting their obligation to build low- cost housing.

Head of the City Program Agency Hadi Laksana said yesterday that based on gubernatorial decree No. 540/1990, the city's 66 developers of luxury buildings are obliged to build low-cost apartments.

Under the decree, the private developers are required to provide 20 percent of their commercial sites for low-cost apartments.

"Their land appropriation permits were issued in the period between 1991 and 1994," Hadi reported.

However, he added, up to now only four developers have fulfilled their obligation to build a total of 988 low-cost apartment units.

The four developers are PT Danayasa Arthatama with 240 units in Tambora, West Jakarta, PT Catur Swasakti Utama with 160 units in Penjaringan, West Jakarta, PT Kuningan Persada with 292 units in Tanah Tinggi and another 296 units in Bendungan Hilir, Central Jakarta.

"PT Mandara Permai is currently building 3,000 units of low- cost apartments in Pantai Indah Kapuk, West Jakarta. The project is expected to be completed by the end of 1997," Hadi said.

Currently, PT Setdco Graha Mandara is still negotiating to build 288 units of low-cost apartments in Tebet, South Jakarta.

A source at the city administration, who refused to be named, said that the developer agreed to fulfill its obligation after being threatened to face the revocation of its permit.

The private developers have been asked to take part in the development of the low-cost apartments as the city administration can only manage to build only 3,150 units per year, or 30 percent of the total demand. The total demand is projected to reach 10,500 units per annum.

Hadi said that his office will remind private developers to fulfill their obligation.

There have been a total of 7,163 units of low-cost apartments built since 1985 in the city, whose sizes range from 18 square meters to 54 square meters. (yns)